Cappitech: MiFID II and other regulatory reports are not yet complete

Source: FinanceFeeds 2019-12-04

Cappitech's second annual MiFID II and Best Execution survey shows that persistent gaps and challenges are unlikely to have a positive impact on some areas

Cappitech, a leading provider of regulatory reporting and intelligence solutions for the financial services industry, has completed the second annual MiFID II and Best Execution Survey, which indicates that the company is still struggling with reporting quality and processes. It also highlights that there is now a lot of consensus on the use of external inspections as a solution, and it is highly desirable to be able to analyze the reported data to understand industry trends.

Overall, a report written by Mark Kelly, a member of Cappitech's advisory board, indicates that the requirements of the reporting system are not yet fully understood, and says that 31.6% of respondents did not receive feedback from regulators after being fined . This loose approach is unlikely to continue indefinitely.

Mark Kelly commented: "The survey results show that companies are still not fully satisfied with MiFID II reporting requirements. In early 2019, the company told us that this year will be a year to set KPIs and review the quality of the data, but apparently This process is happening more slowly than expected. Using external analysis and tools to identify issues may present some challenges as regulators will begin to impose sanctions on companies that do not properly manage data. "

Ronen Kertis, CEO and founder of Cappitech, said: "Companies are not fully adhering to the monitoring of best execution requirements. They also face profound challenges such as reconciliation and lack internal expertise to keep up with rapidly changing regulations. . "

"We believe that third-party providers are a great way to overcome these challenges by providing domain expertise gained from dealing with many similar customers. Using the right vendors also helps to address other clear-cut questions from 64% of respondents Preference, they said, using a single solution or vendor to simplify their reporting obligations is important. "

Other highlights of the survey include:

68% plan to use existing reporting solutions for future regulatory requirements, and 64% of them consider it important to have a solution in all reporting systems.
Only 55% monitor reports daily, but often ignore the requirement for regular reconciliation.
Reconciliation is the biggest issue reporting MiFID, with 44% of respondents viewing reconciliation as a major pain point.
Despite this requirement, 61.4% still do not monitor optimal execution.
Regulators' feedback was very limited, with 68.4% of respondents replied that they have not yet received NCA comments on MiFID II compliance.

The full report can be downloaded here .

investigation method:

The survey was completed by 83 respondents from brokers, banks, asset management companies, and other financial and non-financial institutions in October and November 2019. 75% of respondents are from Europe, including the UK.

Cappitech

Cappitech: MiFID II and other regulatory reports are not yet complete

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